Mastek, what I do know is that new E46 M3 builds (which I assume have more weight and power than US spec S52 E36 M3s) are gapping the 08 GTS3 national champion's E36s times by about 2 seconds at mid Ohio. I am also assuming the cars are all well optimized for the GTS3 power/weight cutoff. The 08 champ himself is reportedly saying he can't compete with those times in his E36 M3. Appearently, the owners of the new E46M3 builds used to compete in GTS3 with E36 M3s before, so they moved away from those cars in favor of the E46 M3.

This is true - and is mainly due to the tire width limitation of the e36.
Which u dont have to worry about if u have an e36 widebody